The Community Infrastructure Levy is in effect a tax on new development, and there is no degree of negotiation available on it during the course of a planning application, unlike the "old" system of Section 106 Agreements. The CIL is a relatively new concept and Local Planning Authorities are only now beginning to adopt it. They have to go through a process of identifying the types of development that they consider are chargeable, and the amount of levy that should be applicable for that development. The levy can also be location based within each borough, so it can be used as a means of dissuading development in certain areas and encouraging development in other areas.
CIL is not applicable to developments of less than 100sq m but it is liable where a new residential unit is created (even if less than 100sq m).
In London there is the Mayoral CIL which was adopted in April 2012. This is to fund the Crossrail project. All developments within the London Boroughs above the threshold have to pay a levy in this respect ranging from £20 up to £50 per square metre.
The CIL is one of the rising costs associated with new development, which whilst making it easier for developers to have some certainty on additional costs of development has resulted in higher contributions to Local Planning Authorities compared with the old Section 106 contributions that were a bit more flexible and allowed for some negotiation. In my view the Government are trying to simplify the planning process but in doing so are increasing the costs of the development process, to such an extent that is makes much new development unviable.
CIL is not applicable to developments of less than 100sq m but it is liable where a new residential unit is created (even if less than 100sq m).
In London there is the Mayoral CIL which was adopted in April 2012. This is to fund the Crossrail project. All developments within the London Boroughs above the threshold have to pay a levy in this respect ranging from £20 up to £50 per square metre.
The CIL is one of the rising costs associated with new development, which whilst making it easier for developers to have some certainty on additional costs of development has resulted in higher contributions to Local Planning Authorities compared with the old Section 106 contributions that were a bit more flexible and allowed for some negotiation. In my view the Government are trying to simplify the planning process but in doing so are increasing the costs of the development process, to such an extent that is makes much new development unviable.
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